(ADVISORY- Follow European and UK stock markets in real time on
the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets)
* STOXX Europe 600 falls 0.6 percent
* All sectors negative, bar commodities
* OPEC deal boosts oil sector
* TalkTalk, Elekta among top fallers
By Alistair Smout and Peter Hobson
LONDON, Dec 1 European shares edged lower on
Thursday in a broad-based sell-off, halting a two-day rally and
retreating from the previous session's three-week highs, led
lower by drops in TalkTalk and Elekta.
The STOXX 600 was down 0.6 percent by 0938 GMT,
having climbed to its highest level since November 10 in the
Almost every sector was in negative territory. The
exceptions were in the commodity space after oil-producing
countries came to a deal to limit oil output.
The STOXX Europe 600 Oil and Gas index was up 1.1
percent, while the basic resources index was up 0.1
percent, the only two sectors in positive territory.
Some traders said that, after a strong November rally that
lifted U.S. stocks to record highs, investors were pausing at
the start of December, with a referendum in Italy and
presidential election in Austria this weekend prompting caution.
Despite a strong rally in oil, Wall Street ended lower on
"We've has this massive rally in the U.S., but it's starting
to turn weaker and I think the malaise is spreading across
Europe," Chris Beauchamp, market analyst at IG, said, adding
that the likelihood that the Italian government would lose
Sunday's referendum was contributing to the subdued sentiment.
Top faller was TalkTalk, down 4.6 percent, after a downgrade
by JP Morgan to "underweight" from "neutral". British regulators
also said they would look into rising landline prices.
TalkTalk has lost nearly a quarter of its value since it
reported first-half results last month, and the investment bank
said that this "significant pullback ... reflects increased
uncertainty about the future trading prospects for the company."
"Execution risk remains high, in our view, and a failure to
stabilize the retail customer base could lead to further
downgrades to consensus estimates," analysts at JP Morgan said
in a note.
Sweden's Elekta also fell 4.6 percent after the medical
equipment firm missed expectations with its results.
European stocks fell despite a spate of positive readings
from factory figures across the euro zone. PMI data showed that
Euro zone manufacturers enjoyed their best month in November
since the start of 2014, a survey showed, benefiting from a
weaker currency and stronger demand.
Top riser on the STOXX 600 was Banco Popular, up 8
percent. The stock had been down 70 percent year-to-date, but
rallied when the bank called an extraordinary board meeting to
replace its under pressure chairman.
The stock had also been called to open higher after a report
in newspaper Expansion that it was in talks over a possible
merger with BBVA or another large lender.
Daily Mail and General Trust rose 6.5 percent
after beating earnings expectations despite a decline in ad
revenue. Investors were also hopeful of a new strategy which the
CEO said would reinvigorate the company's growth.
(Editing by Andrew Heavens)